Stuck in a Groove is the first film made with the phonovideo technique. The technique is also supposed to create live visuals. Look here for the live version and for some more information about the technique used in the film.

The music for "Stuck in a Groove" was created by Richard Eigner/ Ritornell.
There's an interview at motionographer about the creation process.

Synopsis from sixpackilm:
What do Madonna, Massive Attack and Angela Merkel have in common? "Friedrich Nietzsche" might be Clemens Kogler's answer to this question. With the aid of a tool called Phonovideo, which consists of a turntable, video mixers and pressed vinyl, he animates images of the individuals named above in realtime, while at the same time a male narrator's voice goes through the effects of the Nietzschean idea of eternal return on the soundtrack.

This chain of images from (and about) record albums, and also the smooth waves of lounge music, evoke a hypnotic state. But that's not what we want, suggests the voice: eternal return, samsara, the experience of sameness, again and again. It's a vicious circle, as we can neither choose what's repeated nor can we be sure that the endless repetition will make us happy.

But the turntable is not samsara, it's more of a kaleidoscope, a reflection that presents a "best of" collection of famous records from the past 30 years and their cover artwork. This includes Nirvana's Nevermind (how appropriate!), Michael Jackson'sThriller, Björk's Debut, and also Madonna's True Blue and Massive Attack's blue lines. Pop music as eternal sameness? The VJ/DJ as a shaman? He or she's more likely the person who finds the ideal moment while "spinning" and "mixing" sounds and images, prolonging them — nearly — into infinity, until the next transition. To that extent their handiwork vouches for the mind behind the apparatus — and with good reason this realtime extravaganza ends with the artist's palm extended into the picture, the title and credits written on it by hand. Claudia Slanar